{
  "id": 12634555,
  "title": "Japanese Yen: Funding appeal eroded by BoJ hikes – Rabobank",
  "url": "https://urgent.news/2026/10/07/japanese-yen-funding-appeal-eroded-by-boj-hikes-rabobank",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-07T13:18:51.000Z",
  "source": {
    "name": "FXStreet",
    "slug": "fxstreet",
    "url": "https://www.fxstreet.com/news/japanese-yen-funding-appeal-eroded-by-boj-hikes-rabobank-202610071318"
  },
  "original_language": "en",
  "account": "The Japanese Yen has experienced a decline in its appeal as a funding currency for carry trades following the Bank of Japan's gradual rate hikes, according to Rabobank's Senior FX Strategist Jane Foley. This erosion in the Yen's funding currency status is evident even though the recent price action has somewhat diminished the urgency to seek alternative currencies. The decline in the USD/JPY exchange rate, which initially occurred in late July due to intervention by the Ministry of Finance and the US Treasury, became more pronounced in early September when the depreciation continued without any official action. Despite the Bank of Japan's announcement of a rate hike during its September policy meeting, the guidance from the central bank was not as hawkish as the market anticipated. The gradual increase in interest rates by the BoJ is still having an adverse effect on the Yen’s funding currency appeal.",
  "summary": "Rabobank’s Senior FX Strategist Jane Foley reviews the sharp USD/JPY declines in July and September, initially driven by joint Ministry of Finance (MoF)–US Treasury intervention and later without official action. The report notes that the Bank of Japan’s gradual rate hikes are eroding the Japanese Yen’s appeal as a funding currency for carry trades, even though recent price action has reduced…",
  "key_points": [
    "Japanese Yen losing appeal as funding currency for carry trades.",
    "BoJ gradual rate hikes eroding Yen’s funding status.",
    "USD/JPY depreciation continues despite BoJ’s September hike."
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}